With all the changes that have affected the mortgage industry over the last few years, it is now easier to get the very best loan for your needs.
When looking to purchase or refinance a home mortgage, the first question you need to ask is: How long do I plan to own the property?
If you are quite certain that you are going to be there only for a set number of years, it would be best to find a loan that will provide you with the best rate for the least cost for that period of time.
After you have decided what your needs are, it is time to go and find a mortgage. New disclosure laws that went into effect at the beginning of this year should help you compare apples to apples as far as information you receive from different lenders.
Lenders have, for some time, been required to disclose to you within three business days of application what they plan on charging you for a mortgage, both in rate and fees. Did you know that the final costs now need to be within certain percentages of the initial estimates or the broker/bank is responsible to make up the difference?
There are, of course, changes in circumstances that can occur as a result of market conditions, such as interest rate changes. You are again covered, though, as the lender is now unable to surprise you with points or fees at the closing table.
Always check with multiple lenders, and have someone you trust who is mortgage-knowledgeable, such as a real estate attorney, review anything you sign.